ABSTRACT: This study objective
is to understand the effect involvement of founder family to financial
performance (ROA) and firm market value (Tobins Q) in family firm which is
listed in BEI (Bursa Efek Indonesia). Data obtain from annual reports and daily
stock price which is publish between 2008 until 2013. Sample of this study
included 33 family firm and 198 observation with purposive random sampling.
This study use multiple linier regression method to test the effect of founder
as an independent variable and control variables which is contain size, age and
risk, towards firm financial performance (ROA) and firm market value (Tobins Q)
as dependent variables. The result suggest that involvement of founder family
has significant negative effect towards ROA and Tobins Q. This result show that
family firm which managed by founder family tend to have smaller financial
performance and firm market value.